Dear Sir,

I am glad that you were so receptive yesterday, about my proposal for refurnishing the
workplace. I want to discuss more about the issue and for that I have come up with this proposal
letter.
Background
As you know when our office moved from old premises to the new one, the old furniture and
the equipment were also moved, which are pretty scruffy. Our staff are new and modern, who
are not comfortable with the furniture and equipment they are provided, which I think, creates
an impression of lack of care and concern toward them which will ultimately result in affecting
their commitment to the company and job, negatively.
Proposal
I believe there is a greater need to refurnish the workplace. Our neighbouring companies have
moved in with everything brand new which is a basic requirement for a healthy workplace. For
this, Ive already costed out essential new equipment and furniture.
Also, I have all the competitive quotations and the ones I have chosen are cheapest by far,
amounting to a total of about 145,000, with payment over 3 years if required.
Quotation
Items Unit Rate Price
Ergonomically Designed Chairs 300 100 30,000
Workplace for Computer terminals 300 200 60,000
Ring Main (Circuit) - - 20,000
Lightings - - 10,000
Window Blinds 100 50 5,000
Cosmetic/Dcor items - - 10,000
Installation Charges - - 10,000
TOTAL 145,000

Benefits
Owing to my .. background, I have a great deal of information about the benefits of
ergonomically designed equipment and of the beneficial effects of improved layouts and
lighting.
There are several benefits that are less easy to cost. The principal among these is the health and
safety aspect. Improved lighting and reduced glare should lessen the risk of accidents and
damages to eyesight. Improved seating and workplace should improve postures and thus
reducing fatigue and possible long-term injury potential. As a tentative estimate from these
factors alone, I anticipate a saving of some 15,000 per year in sick pay and temps wages and
further productivity increases as well.
On this basis, it should be possible to construct a case that the expenditure could be recouped
in 2 to 3 years. This fits well with the boards directives about payback periods.
Supplier Evaluation
ELITE OFFICE FURNITURE AND EQUIPMENT SUPPLY SERVICE
Britannia Way/Glews Hollow, Goole DN14 6ES, United Kingdom
Evaluation Tools Ratings
Capacity 10
Competency 9
Consistency 9
Control of process 8
Commitment to Quality 10
Cash 7
Cost 10
Culture 6
Clean 9
Communication efficiency 9

Proposed Timeline
One Week at most including delivery and installation, as per my discussion with the supplier.
Proposed Budget and Cost Evaluation
Approximate Cost: 145,000
As we have uncommitted capital budget of about 250,000. The cost of my proposal is
equivalent to about 5% of the wages bill for our department for the year. The improvement in
staff morale and the feeling that the company has their interests at heart should produce a real
productivity improvement in order of around 2%. In wages terms that is about 40,000. This
could involve a staff saving or the absorption of extra volumes in the future at no extra cost.

Productivity Improvement is 2% of the wages of our department which is worth 40,000.

Savings on Sick pay and temp wages = 15,000.
Total yearly Saving = 40,000+15,000 = 55,000
Total Cost for refurbishing = 145,000
Payback term= 145,000/55,000 = 2.5 years
References
Neighbouring company has a healthy workplace and is doing well as compared to our
company. Their employees are more productive. One of the possible reason could be their
dedication toward their employees and considering them as their asset.